MM

[Former Member]

Dear all

what is reconciliation account and it's effects for bussiness partners and G/L accounts

what is controlling account (GR/IR clearing a/c)

what is sundry creditors?

Please guide me

[Former Member · Accepted solution]

what is reconciliation account and it's effects for bussiness partners and G/L accounts

The reconciliation account in G/L accounting is the account which is updated parallel to the subledger account for normal postings (for example, invoice or payment).

For special postings (for example, down payment or bill of exchange), this account is replaced by another account (for example, 'down payments received' instead of 'receivables').

The replacement takes place due to the special G/L indicator which you must specify for these types of postings.

G/L A/c is a used to record general business transactions such as rent payment, travel expenses payments etc, where as special G/L A/c is used for so called special transactions such as advance payments, bill of exchanges, etc.

In the SAP system, transactions relating to customers (Account Receivables) & Vendors (Account Payables) are recorded in a section/smaller part of general ledger known as subsidiary ledger. This subsidiary ledger is linked to general ledger via a G/L Account known as reconciliation account.

what is controlling account (GR/IR clearing a/c)

In simple terms.........

the GR/IR Clearing account is used to account for Goods Receipt and Invoice Entry for the vendor invoices. The GR/IR clearing account program reclassifies the entries in GR/IR account as either assets or liabilities for reporting purpose. At the period end which goods receipt has been done and for which Invoice has not been recd or goods for which invoice has been done and GR has not been done. During the time between invoice being created and delivered the goods. To accommodate this timing difference a gr/ir clearing account is maintain temporarily to record the flow

At the time of Goods Receipt

Inventory A/c Dr

To GR/IR Clearing A/c

At the time of Invoice Receipt

GR/IR Clearing A/c Dr

To Vendor A/c

To accomodate the time difference between goods receipt and invoice receipt we use GR/IR Clearing Account.

At the time of PO; No accounting entry will be generated

Goods Receipts: Inventory RM Dr.

GR/IR Clearing A/c Cr.

Invoice Receipt: GR/IR Clearing A/c Dr.

Vendor Cr.

Please go through the links for clear clarification on GR/IR.

http://help.sap.com/printdocu/core/Print46c/en/data/pdf/MMIVWERE/MMIVWERE.pdf

http://help.sap.com/saphelp_40b/helpdata/en/a8/b9947e452b11d189430000e829fbbd/content.htm

what is sundry creditors?

Miscellaneous creditors

Anand K